Service sector takes off

Otago's service sector heads the country with a burst in
expansion for July, underpinned by an uplift in tourism and the
retail sectors.

Nationally, the monthly BNZ Business New Zealand performance
of services index rose 3.2 points from 55.2 in June to 58.4
points.

Figures above 50 indicate expansion, while those below point
to contraction.

Northern North Island is on 58.4, Central North Island 60.1,
Canterbury/Westland 57.5 and Otago/Southland 65.4.

Otago Southland Employers' Association chief executive John
Scandrett said he had expected to see a regional activity
uplift in tourism and retail sectors and the latest index,
moving from 56.1 points in June to 65.4 points in July has
confirmed the expansionary-focused forecast.

''The July buoyancy in local services activities has also
been felt across health, community and business services but
as usual not all operators have seen an equally strong
lift,'' Mr Scandrett said.

Conversely, the separate manufacturing index released late
last week was nationally in its 22nd consecutive month of
expansion, while Otago Southland was in its third consecutive
month of contraction.

Mr Scandrett said the services index showed clearly weather
had slowed some home services and decorating sector outcomes
and construction lagged behind expectations.